FEBRUARY 2025 Newsletter: What is the Social Security Fairness Act?

You may have heard about the recently signed Social Security Fairness Act and wondered what it was and how it might affect you.

The Social Security Fairness Act eliminates two longstanding provisions for Social Security: the Windfall Elimination Provision (WEP) and the Government Pension Offset (GPO). These rules previously reduced Social Security benefits for retirees who receive pension income from non-covered employment.

This legislation is projected to result in an average monthly increase of $360 for eligible public sector workers, as well as their spouses and survivors. Additionally, it includes lump-sum payments for over 2.5 million individuals to compensate for benefits missed in prior years, which could amount to several thousand dollars per recipient. 

Qualified workers include police, firefighters, postal workers, public school teachers, and other government employees. Those who qualify need not apply for these increases, which will happen automatically. The Social Security Administration is still reviewing how to implement the law, so there is no timeframe for these increases for the moment.

Between this and the recent 2.5 percent cost of living adjustment, many households are poised to receive a financial boost. We've worked with some people to adjust their retirement strategy due to the pending change in Social Security income. If you want to revisit your approach, please contact your advisor.

^{USA Today, January 6, 2025}

• For the 2024-25 tax season, most Form 1099s were mailed by January 31, 2025. You can access an electronic version of your tax document(s) through your Account View profile by clicking the "Documents" in the top menu and then "Tax Forms".
  
  
• In the rare instance of a more complicated tax situation and you do not receive your 1099 consolidated statement by early February, you will receive your original tax forms between February 21 and March 7, 2025. In the interim, a Preliminary 1099-Consolidated Tax Statement will be available to you by logging into Account View. This preliminary 1099 will not be mailed and should not be considered final for purposes of filing a tax return with the IRS or with any or other regulatory agency. Further information can be found on the TAX SEASON 2024-25 section of our website's FAQ page.
  
  
• TheSetting Every Community Up for Retirement Enhancement (SECURE) Actwas enacted in December 2019, and was followed by additional provisions inSECURE 2.0in December 2022. Taken together, the laws incentivize individuals to save for retirement while increasing access to workplace plans, benefitting individuals and small business owners. Please read the Top 10 Provisions in Secure Act and Secure 2.0for how this may affect your situation.
  
  
• Did you know?Your Account View profilenow offers access to new financial calculators that can help with retirement and insurance planning, as well as personal budgeting.  These calculators are found under the "Planning" menu.  
  
  
• It is with much appreciation for your overwhelming dedication and support that Rick West has been named as a Five Star Wealth Manager Award Recipient for 2025! Rick's profile will appearon the Five Star Professional site, as well receive recognition in Boston Magazineand theWall Street Journalin March, andForbes Magazinein early summer. Five Star Wealth Managers are named using an in-depth research methodology that includes ten objective criteria, as described in the below video. Please join us in congratulating Rick on receiving this prestigious award!

Have You Created Your IRS Online Account?

The IRS makes it easy to create an online account where you can view all kinds of account information, such as:

• Your payoff amount
• The balance if you owe taxes
• Your payment history
• Key information from your most recent tax return
• Payment plan details (if you have one)
• Select IRS notices
• Economic payments (if you have any)
• Your address on file with the IRS
  

You can even pay online and receive a digital copy of your most recent tax return transcript.

^{This information is not a substitute for individualized tax advice. Please discuss your specific tax issues with a qualified tax professional.}

^{Tip adapted from IRS}

FBI Warns Smartphone Users—Scams on the Rise

TheFBI is warning smartphone users¹to beware the threat from dangerous calls that will cost you a significant amount of money if you make a mistake. 

The FBI’s warning focuses onscam calls² pretending to be from banks or technical support, that trick users into moving money from their account or installing dangerous software on their device. The bureau says such scam calls may even be able to “spoof” the caller ID number, making the threat even harder to detect.

The advice is always simple. Do not take unsolicited calls from banks or tech support, never agree to install software or move money, and do not pay cold calling cops asking for cash. 

^1Forbes.com

^{2Newsweek.com}

A palindrome is any word, phrase, or number that reads the same, either forward or backward. Can you think of a palindrome word spelled in all capitals that looks the same backward, forwards, or upside down?

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Last Month's Riddle: Throughout Friday, Hanna asks her mother the same four-word question. On each occasion, her mother gives her a different answer. What is the question?

Answer:What time is it?